Crypto is starting to go mainstream. Indeed, this is a sector that’s quite divisive. Whether it’s XRP (CRYPTO: XRP), or another crypto, there are bulls and bears with often staunch views on either end of the spectrum.
In the case of XRP, this token is perhaps one of the most divisive of all cryptocurrencies. That’s partly due to the legal headwinds that’s embattled XRP and its parent company Ripple since 2020.
That said, regardless of this overhang, I think this is an intriguing crypto to consider. Here’s why.
Ripple buys back shares
XRP is a project, like many, with a company behind the scenes. Ripple is the parent company of XRP and has brought a lot of innovation to the crypto world.
Despite being embroiled in an ongoing lawsuit, Ripple has done a few things that have raised eyebrows. Among these is the move to buy back shares issued after receiving a $200 million funding round in 2019. Indeed, this is a rather unusual move that highlights XRP’s momentum, despite an ongoing battle with SEC. Speculators believe that this move could suggest this lawsuit will be wrapped up sooner than expected.
In late 2019, Ripple completed Series C funding, which was led by Tetragon. It received investments from Route 66 Ventures and SBI Holdings at a valuation of $10 billion.
Now, Ripple is revaluing these shares at a valuation of $15 billion. Thus, initial investors bagged paper profits of 50% in just two years.
Despite the various headwinds including customer attrition of late, XRP is snowballing. This token’s ecosystem is growing, and the usage on the network continues to grow was well. Those looking at the business angle with this project’s parent company Ripple may like what they see.
The legal case’s conclusion might trigger XRP’s value
Ripple has mostly remained tepid, despite a rise in other cryptocurrencies in the past year. Fortunately, the company is jumping back to life following recent court proceedings. There are growing expectations that the ultimate judgement in this case will be in favour of Ripple. Favourable conclusion or not, the removal of uncertainty from this project should be a key tailwind.
Overall, I think this situation is an interesting one. Indeed, XRP could represent a “special situations” play for crypto investors looking for a way to play momentum in this growth area.
Bottom line
XRP is an affordable way to conduct cross-border financial transactions securely. This network has shown its value in the past and could be looked to as a key piece of the future of international money transfers over the long term. Given the Russia-Ukraine situation, XRP’s value has been highlighted more than other tokens.
Like all cryptocurrencies, XRP carries higher-than-average risk. That said, I think this token is certainly worth a look for aggressive investors looking for a momentum play in the crypto space.
